Crowdstrike Q2 - Cybercrimes At All Time Highs

On Tuesday after the market close, CrowdStrike released a good set of quarterly numbers that beat analysts' expectations. The Sunnyvale, California-based cybersecurity company grew its earnings per share by 266% to 11 cents, while revenues jumped 70% to $337.7 million year-on-year thanks to 1 660 new corporate subscribers, bringing the total to 13 080.

The company also raised its revenue guidance for the year to between $1.39 billion and $1.4 billion. Analysts are debating whether its annual recurring revenue growth has slowed. We think not, the company has proven itself in taking market share and providing superior services.

In my latest comments on cybersecurity, I pointed out that ransomware attacks show no signs of slowing down, being up 337% from 2019. There have been high profile attacks on the JBS meat company and the Colonial Pipeline. Of course, these hackers target certain IT management tools with vulnerabilities, but it provides an opportunity for businesses like CrowdStrike.

CrowdStrike uses machine learning to detect any irregularities in corporate IT systems and maintains a specialised database to find malware on laptops, cellphones, and other devices that access dedicated corporate networks. We're very bullish on CrowdStrike as a company that protects classified information from criminals. We have recommended this one to Vestact clients, and you should consider adding some to your portfolio.